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‘If they have dollar, we have our Allah’: Erdogan

"The entire Turkish public is against U.S. policies that disregard Turkey's legitimate security demands".

Washington in response sanctioned two Turkish ministers and Trump on Friday announced it was doubling the tariffs on steel and aluminum imports from Turkey, saying relations with Ankara were "not good at this time".

Through the early part of the morning, the Turkish Lira was down another 1.92% to 6.9585 against the Dollar, the continued slide gripping the global financial markets at a sensitive time, where an ongoing trade war with China, fresh sanctions on Iran and new sanctions on Russian Federation are already testing market resolve. Aluminium will now be 20 percent and Steel 50 percent. "Failure to reverse this trend of unilateralism and disrespect will require us to start looking for new friends and allies", Erdogan said.

Also on Friday, relations between the United States and Turkey have worsened over the fundamentalist Muslim-majority country's detention of American pastor Andrew Brunson, who was arrested by authorities during a post-military coup attempt in 2016.

A Turkish delegation visited Washington for talks this week but left with no signs of a breakthrough.

Why is the White House hitting Turkey with tariffs? The lira, which had already lost one-third of its value this year largely over worries about Erdoğan's wider control of the economy, is at a fresh record low, at one point losing 18%, its biggest fall since 2001.

Erdogan said Turkey acted in accordance with the law, saying: "We have not made concessions on justice so far, and we will never make any".

Erdogan said during an address to supporters: "Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".

In a tit-for-tat response to the United States sanctions, Erdogan responded by announcing that the assets in Turkey of the USA secretaries of "justice and interior" would be frozen.

"The dollar can not block our path".

Erdogan's words did little to reassure investors. "China spat a well established one, but concerns over the European Union, Britain and Turkey also in the air", said Bart Wakabayashi, branch manager for State Street Bank and Trust in Tokyo.

He said high foreign exchange rates were being used as a weapon against Turkey.

"Confidence needs to be regained".

Turkey's sovereign dollar-denominated bonds tumbled, with many issues trading at record lows. As the currency drops, Turkish companies and households with debt in foreign currencies see their debts expand.

Presenting the government's new economic model, he said the next steps of rebalancing would entail lowering the current account deficit and improving trust.

The yuan has slipped about 0.4 percent this week, weighed down as the market remained bearish on the near-term outlook for the currency amid the trade war between Washington and Beijing. "Albayrak's plan was uninspiring at best".

Erdogan has been putting pressure on the central bank to not raise interest rates in order to keep fueling economic growth.